AI firm xAI registers as a ‘Benefit Corporation’ in Nevada

Artificial Intelligence (AI) firm xAI has registered under a benefit corporation structure, reveal TheInformation.

xAI is organized in Nevada as a for-profit benefit corporation. Also known as B Corps, benefit corporations are a legal corporate structure that allows businesses to balance profit with a positive social and environmental impact.

The latest plans about xAI have been found in a late November filing with Nevada. It revealed that xAI wants to generate a “material positive impact on society and the environment”.

Benefit Incorporations are currently in trend in the US and OpenAI is one of the latest and leading examples of this cooperate term.

However, xAI’s structure wants to conduct annual assessments of its societal impact including an annual report on efforts in this matter.

xAI:

Founded in March 2023, xAI is a new AI venture from billionaire Elon Musk for research and development of AI products.

Musk was also one of the co-founders of OpenAI in 2015. He reportedly committed $1 billion in OpenAI in the early days when the ChatGPT maker was registered as a ‘non-profit’ organization. But Musk later left the OpenAI board due to some disagreement with the organization’s direction.

Despite its early revelation, Musk officially brought xAI into effect by July 2023.

In November, xAI released its first large language model, Grok. The interface and features are quite similar to ChatGPT but the AI company claims that it has more humor than any other LLM.

Following its release, xAI integrated this AI chatbot into Musk’s social media site X, formerly known as Twitter. Grok is still in early access and only available for X’ Premium+ subscribers, which costs $16 a month.

An SEC filing revealed that xAI has raised $134 million in outside funding but Musk denied that xAI wasn’t seeking any funding.

(source – TheInformation)